Mumbai: The sensex opened weak and later staged a smart recovery during morning trading after a 344-point crash in the last two sessions on the Stock Exchange today (May 12, 2004) on hectic short covering ahead of Lok Sabha poll results tomorrow (May 13, 2004).

The BSE Benchmark 30-share Index opened lower at 5296.25 as against yesterday's (May 11, 2004) close of 5325.90 but later recovered smartly rising to a high at 5387.87 before being quoted at 5337.74 at 10.30 hrs (IST).

Investors who earlier resorted to heavy sell-off in the last two sessions in reaction to political uncertainty, rushed to cover their short positions following indications of a hung Parliament after the BJP-TDP combine routed in the Assembly elections, brokers said.

Investors preferred to keep their positions squared up in the prevailing uncertain political situation, they added.

The BSE barometer had lost 343.68 points on Monday and Tuesday following suggestions by exit polls that the ruling coalition led by BJP will struggle to retain majority in the new Parliament as well as the TDP's rout in Andhra Pradesh.

Brokers expected the market to remain volatile during the session even as operators and funds were seen covering short positions.